MPMX Keeps Up Strong Earnings Momentum With 80% Earnings Growth in the First Semester of 2017

JAKARTA, 31 July 2017 – PT Mitra Pinasthika Mustika Tbk (IDX Ticker: MPMX, “Company”), Indonesia’s smart mobility company posted consolidated net profit after tax and minority interest (NPATMI) of Rp 323 billion in the first semester of 2017, approximately 80% increase from the same period last year. The result includes the Company’s internal restructuring in order to optimize its capital structure and enable growth in both non-finance and finance businesses. The divestment of 20% stake in MPMFinance to JACCS Co. Ltd creates a one-off gain of Rp 107 billion. Furthermore, the Company also released unproductive fixed assets in the first quarter resulting in a gain of Rp 34 billion. The distribution and retail businesses as well as consumer parts business contributed 82% to the overall earnings, while steady growth within auto services and financial services contributed to the rest of the Company’s consolidated earnings.
 

The Company’s revenue decreased by 8% from Rp 8.3 trillion in the first semester of 2016 to Rp 7.7 trillion. The decrease is attributed by a combination of lower consumer purchasing power and shorter working days during the Lebaran break in June, which has impacted sales result. Post de-consolidation of MPMFinance, the Company’s net debt to equity ratio from the month of May has improved from 1.1x to 0.3x. In addition, the Company has achieved improvements in all of its key operations levers  and translated into improved profitability for the Company. NPAT margin has increased from 2.3% to 4.6% when compared to the same period last year, ROA increased from 2.5% to 5.8% and ROE from 6.7% to 11.0%.
 

Continuing its transformational journey with a vision to positively impact lives through smart mobility and social integration, Group CEO MPMX Rudy Halim shares his views on the Company’s performance during this year’s first semester. “We are in the midst of the transformational journey that we set out to do in the first half of last year. The journey is full of challenges but, with the platform we have, we are well positioned to create massive impact in the society with our transformation initiatives. We will dedicate our resources and energy not only into continuously improving our existing operations but also making new breakthroughs which will enable the Group to produce sustainable superior profits in many years to come.”
 

The new changes made to the Group as a whole have led the Company to earn some accolades already this year from several high-profile publications in Indonesia and Asia Pacific, such as SWA Magazine that enlists MPMX on its Indonesia’s Top 100 Most Valuable Brands 2017 and financial and capital market publication FinanceAsia that names the Company among Top 5 Best Companies at Investor Relations as part of its Asia’s Best Managed Companies poll results.

In two-wheeler distribution and retail business, MPMX through MPMulia and MPMotor has recorded Rp 6,7 trillion of revenue or a 7% decline compared to the first semester of 2016. The decrease was mainly due to low purchasing power since early 2017 as a result of local electricity tariff adjustment. Within the first semester of 2017, MPMulia has successfully sold 406,000 units of Honda motorcycles, or an 11% decrease from the same period last year.
 

As for the four-wheeler distribution and retail business, during the first half of 2017, MPMX through MPMAuto sold 1,023 units of Nissan-Datsun cars or 67% lower than the first semester of last year resulting in 57% decline in revenue due to inventory issue and limited product launch from Nissan and Datsun. In order to strengthen MPMAuto’s competitive capability, the company’s focus on operational efficiency and sales productivity as well as after-sales service quality will be continuously reinforced.
 

In auto consumer parts segment, Federal Karyatama (FKT), the producer and distributor of Federal Oil and Federal Mobil lubricants, resiliently maintained stable results by selling 30 million liters of lubricants during the first half of 2017, a slight 6% drop compared to the same period last year. Meanwhile, revenue also decreased by 6% as compared to first semester of 2016. This is due to market slowdown during Lebaran holidays, which caused low consumer traffic to retail outlets. This segment posted Rp 135 billion in earnings throughout the first half of 2017.  
 

For the auto services segment, MPMRent generated Rp 25 billion of earnings during the first semester of 2016, which brings upon a growth of 127% compared to the same period last year. The strong growth was driven by higher gross profit, operating expense efficiencies, and lower financing cost. MPMRent’s revenue during the period remained stable at Rp 537 billion or 1% lower than the same period last year.
 

Within the financial service segment, as of May 2017, MPMFinance was officially de-consolidated from MPMX’s financial statement. The revenue of MPMFinance will not be consolidated into the group’s overall number while the profit of the 40% ownership will be recorded under “share of profit of associates” in the P&L statement. MPMFinance posted 40% higher new bookings driven by strong increase in new four-wheeler financing as well as receiving additional funding through syndicated loan to support portfolio growth. The company’s profit also increased by 2313% to Rp 48 billion while maintaining healthy Non-Performing Loan (NPL) level of 2.6%. Meanwhile, MPMInsurance recorded a gross premium growth of 4% compared to last year to Rp 212 billion. The company’s revenue grew by 38% to Rp 85 billion while its net profit increased 51% year on year to Rp 30 billion during the first semester of 2017.
 

“Based on these results, our outlook remains positive throughout the year. We are also working on optimizing new business growth potentials, and communicate them as we progress, in order to achieve various operational and financial targets we have set on ourselves since the beginning of the year”, Rudy said.

 

MPM is a leading Indonesian company with a vision to positively impact lives through smart mobility and social integration. By collective power, we aim to deliver the most relevant products and services to the people in our ecosystems through innovation. Our businesses offer a broad spectrum of mobility solutions, from retailing and distributing motorcycles and cars, after-market parts and services, transportation and logistic services, and financial services. MPM is Indonesia’s mobility ecosystem and we will continue to create smarter mobility solutions to help Indonesia integrate better than ever before.